Indian equity markets closed in the red on December 9, 2025, with a distinctly cautious and bearish undertone as investors remained on edge ahead of the US Federal Reserve’s policy decision. Weakness in IT heavyweights, renewed US tariff concerns, and profit booking in banking stocks, and muted global cues dominated sentiment. Gold and silver provided the only bright spots.
- Sensex shed 436 points, Nifty slipped below 25,850 on Fed uncertainty
- IT index fell 2.1% on fears of hawkish Fed tone and delayed rate-cut cycle
- India-US bilateral trade talks resumed amid looming tariff threats
- Gold rose ₹800/10g, silver crossed ₹96,000/kg as safe-haven buying intensified
- Temasek reaffirmed its commitment to significantly scale up its India investments
Sensex, Nifty end lower as Fed caution triggers broad-based selling
Benchmark indices ended the session with sharp losses as investors turned risk-averse ahead of the US Federal Reserve’s December policy meeting. The BSE Sensex dropped 436 points (0.52%) to close at 83,520 while the NSE Nifty 50 declined 142 points (0.55%) to 25,843. Heavyweights such as HDFC Bank, Infosys, TCS, and Reliance contributed the most to the fall. Midcap and Smallcap indices outperformed with marginal gains, indicating selective buying at lower levels. FIIs remained net sellers to the tune of ₹912 crore while DIIs absorbed the supply with ₹1,1488 crore of buying.
US Federal Reserve meeting keeps global and Indian markets on tenterhooks
Global markets, including India, traded with extreme caution as the US Fed began its two-day policy meeting. Consensus expects a 25 bps rate cut, but investors fear a hawkish forward guidance citing sticky inflation and strong labour data. A less-dovish Fed could strengthen the dollar, trigger FII outflows from emerging markets, and delay India’s own monetary easing cycle, putting pressure on growth-sensitive sectors such as IT, realty, and automobiles.
Reuters India https://www.reuters.com/world/india/indian-shares-set-subdued-open-ahead-us-fed-decision-2025-12-09/
India and the United States resume high-level talks for a bilateral trade agreement
Commerce Secretary-level talks between India and the US recommenced in Washington to finalize the first phase of a bilateral trade agreement before the January 2026 deadline. Key focus areas include market access for agricultural goods, reduction of duties on electronics and auto components, and resolution of non-tariff barriers. A successful outcome would cushion Indian exports against potential 10–60% tariffs threatened by the incoming Trump administration.
Business Standard https://www.business-standard.com/economy/news/india-us-resume-trade-talks-washington-bilateral-deal-tariffs-125120900587_1.html
Trump floats additional tariff carve-outs; announces $12 bn farmer aid package
President-elect Donald Trump indicated willingness to grant limited tariff exemptions to select trading partners while unveiling a $12 billion bailout for American farmers impacted by retaliatory duties. The announcement created mixed signals for India — relief on some items like pharmaceuticals and textiles, but continued uncertainty on steel, aluminium, and electronics. Indian exporters adopted a wait-and-watch approach.
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Top Performing Equity Funds Top Performing Debt Funds Top Performing Hybrid FundsGold surges ₹800/10g, silver breaches ₹96,000/kg on safe-haven demand
Domestic gold prices jumped ₹800 per 10 grams to ₹78,200 while silver crossed the psychological ₹96,000 per kg mark for the first time since October 2022. Renewed geopolitical tensions, dollar weakness ahead of the Fed meet, and strong central-bank buying propelled the rally. Jewellers reported deferred purchases, whereas institutional and ETF inflows remained robust.
Financial Express https://www.financialexpress.com/market/commodities/gold-price-today-9-december-2025-silver-crosses-96000-3684123/
Singapore’s Temasek to significantly expand India allocation
Temasek Holdings Chairman Lim Boon Heng met Finance Minister Nirmala Sitharaman and conveyed plans to substantially increase exposure to Indian equities, private credit, and infrastructure over the next 3–5 years. Current India exposure stands at ~7% of its global portfolio (~$400 billion+. The sovereign fund cited India’s structural growth story, demographic dividend, and improving ease of doing business as key drivers.
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Top Performing Large Cap Funds Top Performing Mid Cap Funds Top Performing Small Cap FundsPM Modi declares India has entered “full-fledged Reform Express” phase
Addressing industry leaders, Prime Minister Narendra Modi stated the country is now in an accelerated reform phase with multiple growth-oriented bills lined up in the Winter Session, including the Jan Vishwas 2.0 Amendment and Banking Laws Amendment. The reforms aim to decriminalise minor offences, improve credit flow, and attract long-term foreign capital.
The Hindu BusinessLine https://www.thehindubusinessline.com/economy/pm-modi-says-india-in-full-reform-mode/article69012445.ece
Indian IPO market creates history, mobilises record ₹1.8 lakh crore in CY2025
Primary market activity remained red-hot with total funds raised through IPOs, FPOs, and QIPs touching an all-time high of ₹1.80 lakh crore in calendar year 2025, surpassing the previous record of ₹1.62 lakh crore set in 2021. Strong retail and HNI participation, abundant liquidity, and robust listings kept the momentum alive.
Economic Times https://economictimes.indiatimes.com/markets/ipos/fpos/india-ipo-boom-2025-record-1-8-lakh-crore-raised/articleshow/116123456.cms
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Top Performing Liquid Funds Top Performing Ultra Short Duration Funds Top Performing Corporate Bond FundsEdtech unicorn PhysicsWallah posts 70% YoY PAT growth in Q2 FY26
Alakh Pandey-led PhysicsWallah reported a standalone net profit of ₹69.7 crore for the September quarter, marking a 70% jump from ₹41 crore last year. Revenue from operations grew 26% to ₹427 crore, driven by expansion in offline hybrid centres and new exam categories. The company turned EBITDA positive across all verticals.
Inc42 https://inc42.com/buzz/physicswallah-q2-profit-surges-70-revenue-crosses-400-cr/
Bajaj Finance remains analysts’ top NBFC pick despite market volatility
Brokerages including Morgan Stanley, JPMorgan, and Motilal Oswal retained an Overweight stance on Bajaj Finance, citing 24–26% AUM growth guidance, improving asset quality, and market-share gains in consumer durables, rural financing. The stock recovered 2.1% intraday on strong volume after a recent correction, signalling accumulation by long-only funds.